State owned PSU, Oil and Natural Gas corporation (ONGC) on Thursday reported a 64.77% rise in its Year-on-Year profit, taking its quarter 3 profit ₹8,263 Crore. ONGC reported ₹5,014.67 Crore profit in the corresponding quarter during the previous fiscal.
Revenue also surged about 20.43 percent YoY and was at ₹27,694.09 Crore for the third quarter compared to ₹2,224.62 Crore in the Q3 of last fiscal year.
After the strong quarter third results the shares of the company hiked about 5.5% in the share market. After a healthy Q3 report, the board also approved an interim dividend of Rs 5.5 per equity share.
Offshore revenue increased to ₹18,955.86 Crore in the quarter under review, which was at ₹15,920.99 Crore in corresponding quarter last year. Similar upward trend can be seen in the onshore revenue segment which was at ₹8,738 Crore, almost ₹1,164 Crore higher from Q3 of FY18.
The good quarterly results by ONGC is expected to continue as the Government of India is mulling over a decision to increase the price of natural gas by 10% from April 1. The decision if finalized will surely boost the earning margins of the state owned Oil and Gas company.
Read :Government soon may hike Natural gas prices by 10%
Reportedly, India imports half of its Natural gas need, which costs double the domestic rate. Thus, the move of the government will bring good margins to the Indian companies and will boost their business.